The European Lotteries Association has applauded a draft of new digital rules accepted by the European Parliament that addresses illegal content, holds online gaming platforms accountable for algorithmic decisions, and improves content management. 

New Digital Laws

The outcome of the legislation, which was decided by a vote of MEPs, was 530 to 78 with 80 abstentions. This decision will serve as the basis for negotiations with the French chair of the UN Security Council, which represents member nations. Arjan van ‘t Veer, EL secretary-general, stated in response to the outcome: “EL members fervently believe in a high degree of consumer protection and are fully dedicated to combating illicit online gaming.”

The DSA is a proposed EU law aimed at creating a safer digital world in which users’ rights are protected through rules addressing illicit products, services, or material online; increasing algorithm accountability and transparency; and addressing content moderation. Following the European Commission’s December 2020 proposal, member states adopted their general approach in the Council last November. EL requested the Council to eliminate specific references to online gambling and betting services from the DSA before its meeting.

Following the vote, Christel Schaldemose MEP, who is leading the Parliament’s negotiation team, stated: “Today’s vote demonstrates that MEPs and EU citizens demand an ambitious, future-proof digital policy.” Much has changed in the two decades since the directive on electronic commerce was adopted.

The Parliament’s amendments are said to include a “more transparent and informed choice” for recipients of digital services, the prohibition of targeting or amplification techniques involving minors’ data to show ads, and the prohibition of targeting individuals based on special categories of data that enable the targeting of vulnerable groups. In addition, recipients of digital services and the organizations that represent them must be allowed to seek recourse for any losses incurred as a result of platforms failing to uphold their due diligence duties.

The DSA will impose new requirements on larger platforms as a result of the perceived risks they pose in terms of the transmission of unlawful and harmful content. These include clauses requiring required risk assessments, risk mitigation measures, and independent audits, as well as provisions requiring the transparency of recommender systems – algorithms that determine what users see. Following the EP’s approval, negotiations between all three institutions – dubbed the trilogues – will result in the finalization of the future regulation’s language and the eventual implementation of DSA rules in 2023.

The European Gaming and Betting Association endorsed the DSA proposal in December 2020, following the European Commission’s appeal for “a bold reform of the digital space. The EGBA claimed at the time that “although the DSA does not regulate online gambling, its importance to the sector remains due to ex-ante laws governing digital gatekeepers such as social media corporations, digital liability for online platforms, online advertising, and notice and takedown proceedings.”

Quotes from the Press Release

“Online platforms have grown in importance in our daily lives, bringing with them new opportunities but also new threats. It is our responsibility to ensure that what is prohibited offline remains prohibited online. We must ensure that digital rules are implemented in ways that benefit consumers and people. Now we can negotiate with the Council, and I am confident that we will be able to resolve these difficulties.”

“The DSA anticipates several new provisions that may be advantageous in this regard. EL expects that its members will have access to these tools, which include an upgraded notice-and-action mechanism, the idea of trusted flaggers, and stronger consumer protection and know-your-business-customer standards.”

“Today, EL applauds MEPs, particularly rapporteur Christel Schaldemose, for their support in improving the European Commission’s plan to build a safer digital space for everybody.” Arjan continued. This is a watershed moment in the EU’s Internet regulatory landscape.

“We applaud the Commission’s Digital Services Act and believe that it marks the start of the Commission’s reinvigorated efforts to address several regulatory difficulties affecting businesses and consumers who buy and sell services in the digital arena,” said Maarten Haijer, EGBA secretary-general.

“One of the issues we see in Europe’s online gaming market is the need for more consistent EU rules, notably around client safety, and the Commission must move up to solve the current fragmentation.”